EBTM plc
(the ”Company” or the ”Group”)
Pre-Close Statement
EBTM plc is an AIM quoted, vertically integrated online retailer and wholesaler of music inspired fashion. Prior to entering its close period for the year ended 30th April 2008, the Board of EBTM plc today issues the following trading update.
The Board is pleased to announce that trading for the latter part of the financial year has been in line with management’s expectations at the time of the announcement of interim results in January 2008. As a result we anticipate that the Company will report a maiden full year profit before tax. Adjusted EBITDA and cash generation are expected to be in line with current market expectations. Revenue for the full year is also expected to be in line with market expectations and substantially ahead of the previous year, assisted by the acquisitions made in June 2007. Good progress has been made since our last update in January 2008 and the Board believes that the business is well placed for continued growth.
Site conversion issues identified at the time of the interim results have been addressed successfully and levels are now back to historic rates, with room for significant further improvement. We continue to work through a company-wide plan to maximise the benefits to our business of the brands and capabilities acquired in the acquisitions. In particular, we are making good progress in increasing the proportion of own brand products within the online sales mix. This has the effect of enhancing our margins.
The Board is continuing to seek royalties and new revenue streams from its stable of own brands. Ownership of the Atticus and Lowlife brands secures the largest source of revenue for the wholesale business, brings margin benefits both from licensees and from sales made by our own online and wholesale activities. Signs are encouraging from our licensee of the Atticus brand in North America and EBTM plc has saved around #400,000 in royalties in this financial year by virtue of the acquisition of the brand in July 2007. The Board has also sought further direct international wholesale relationships for EBTM brands with some success, particularly with Lowlife branded accessories in the USA.
The wholesale market has performed in line with expectations at the time of the interim results despite some challenging trading conditions on the UK high street. As of today’s date, the forward order book for delivery in Autumn 2008 is healthy with mainland Europe showing good growth.
Whilst the Board remains cautious about the outlook for the wholesale business bearing in mind current conditions on the High Street in the UK, the outlook for the Group remains positive, in particular for the key online retail business.
In addition, the Board announces that on 30 April 2008, David Howell, Non-executive Chairman, was granted 500,000 options at 2.6p, exercisable on or after 21 October 2010. They will expire after ten years from the date of the grant.
Enquiries:
EBTM plc 020 7819 1950
Richard Breeden, Chief Executive Ian Collins, Group Finance Director
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